Las Vegas Monorail Co. Files for Chapter 11 Bankruptcy, Citing COVID-19 Pandemic Blow | Nevada
(The Center Square) – The Las Vegas Monorail Co. filed for bankruptcy this week amid damage from the COVID-19 pandemic.
Chairman and CEO Curtis Myles said the decision to file for Chapter 11 bankruptcy was in the “best interests” of the company. according to Las Vegas Review-Journal.
“As a result, it is in the best interests of the Las Vegas Monorail Company to file for bankruptcy and effect a sale of the assets of the system to a party that intends to keep the system running and to help secure that the mobility benefits provided by the monorail continue during conventions, events and throughout the year,” Myles said Monday, the Review-Journal reported.
The company is a private, non-profit corporation that provides alternative monorail transportation options for tourists and workers on the Las Vegas Strip. Key terminals connect some of the Strip’s most popular hotels.
Due to the ongoing COVID-19 pandemic, the entire state of Nevada, like much of the United States, has shut down most segments of the economy. Las Vegas and outlying communities have been hit particularly hard by the mandatory closures. The monorail system saw a noticeable drop in passenger traffic after hotels closed.
The monorail operator had previously filed an application bankruptcy in 2010 after traffic expectations have been insufficient.
Earlier this month, the Las Vegas Convention and Visitors Authority board approved a $24.26 million acquisition deal for the monorail operator.